International business memo Essay Example | Topics and Well Written Essays - 1250 words

International traffic memo - Essay typePresented below is an outline of actions that need to be undertaken to palmyly enter the Peruvian market. Firstly, it describes the current internal operations of ICC. Secondly, it illustrates relevant actions involving business strategy, form of international business, organisational structure, marketing strategy, IT and supply chain, which are essential for a successful expansion in Peru. This will significantly help in evaluating on whether or not expanding to Peru is an effectual strategy for ICC. Objectives Strategy Global penchant provide effective solution to the various chemical postulate of clients across different industries effectively and expeditiously distribute commodity chemical products to a broad contrive of industries in larger geographic areas Value Chain Configuration Take advantage of the strategical localization principle of chemical suppliers in the States Key Advantages consistently deliver industrial firms with cost efficient and high school take account chemical products expand distribution of chemical products from Peru to potential markets in South America efficiently Take advantage of the strength of Industrial Chemicals Corporation maximise the benefit from the relationships with suppliers to deliver high value chemical solutions Key Disadvantage need to invest heavily in ways to increase cooperation and cleverness in the flow of chemical products from US headquarters to Peru Form of International descent Equity fusion Enter into a strategic partnership with an existing industrial chemical distributor in Peru by gaining a minority ownership of the Peru base chemical distributor avoid exposure to high strategic, operational, and effectual business risks Out of 185 countries, Peru got the 43rd spot for the best places for doing business in 2013 (World Bank) Peru ranked 44th based on the 2013 economic freedom indicator, and has the 29th freest economy among the 29 countries in Cen tral and South America (Peru) Potential Problems Weak Ranking in the freedom from corruption Ratings from the freedom from corruption index is actually much below the world average ((Peru)) Business Practices of Informal Sector About 70% of firms like a shot compete with unregistered businesses which is higher than the regional average of 62% (World Bank) Business Culture Differences Time Orientation Time is regarded with flexibility so it is usual to start a meeting late As an investor, it is mollify important to arrive on time during a business meeting (Business Culture, par. 1) High Power- aloofness (National Culture Dimensions, par. 1) Hierarchical form of organisations tend to dominate decision making is concentrated on the top (Business Culture, par.10) It is essential to conduct business meeting with top executives since they make the key decisions (Business Culture, par.10) Low Individualism (National Culture Dimensions, par. 4) Business relationship reflects their stron g preference for collectivism a reflection of their closely knit family relationships (Business Culture, par. 2) Inquiries on family matters are common during initial stage of business meeting (Business Culture, par. 3) Searching for the best complementary strategic partner Conduct an analysis on the performance and culture of every potential alliance partner which operates in Peru Key characteristics of an effective strategic partner Committed and trustworthy potential partner (Mohr & Spekman, 135) Potential